India Composite PMI Highest on Record

The HSBC India Composite PMI surged to a record 65.2 in August 2025 from a final 61.1 in the previous month, flash data showed. The upturn was driven by stronger growth across both manufacturing and services. Services led the gains, with business activity hitting a fresh survey high. Total new orders rose near a record pace, supported by the fastest foreign sales growth since the composite index began in 2014. Firms cited greater demand from Asia, the Middle East, Europe, and the US. Overall employment also picked up, as faster job creation in services offset softer hiring among manufacturers. Still, backlogs of work rose only marginally, the slowest since May. On inflation, input costs climbed amid higher wages and raw material prices, prompting companies to raise output charges at the steepest rate since February 2013, often citing strong demand as justification. Looking ahead, business confidence strengthened to its highest since March on expectations of sustained demand.